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I, WE PRESENT ALL THE COMMISSION HERE.SO NOT LEFT INTO A WORKSHOP MEETING OF THE, UH, COMMISSIONER'S COURT TODAY.
WE'LL TAKE NO ACTION, BUT IT'LL JUST BE AN INFORMATION, UH, ITEM.
AND TODAY'S WEDNESDAY, SEPTEMBER THE SIXTH.
SO, UM, WE'LL GO AHEAD AND CALL A MEETING TO ORDER.
AND THE FIRST ITEM ON THE AGENDA IS TO DISCUSS THE BICA OR TO DISCUSS BICA ALTERNATIVE PRODUCTS, UH, AND ALSO A MANAGED ASSET PORTFOLIO PROGRAM AND EMPLOYEE BENEFIT PLANS AS PRESENTED BY TCG.
SO AND SO, GENTLEMEN, IF Y'ALL WOULD LIKE TO COME UP HERE AND, UH, PRESENT AND MAYBE CONTROL THE ENTIRE AUDIENCE.
COULD, UH, CHRIS, WE'RE GLAD TO HAVE YOU THIS MORNING.
AND, UH, UH, JUST, UH, I THINK YOU WERE EMAILED MOST OF THIS, I THINK, UH, THAT YOU, UH, HAVE A COPY OF.
BUT, UH, OUR TREASURER IS MR. OFIELD SITTING RIGHT HERE.
I, WHETHER YOU GET A COPY OF THIS HONOR, AND THEN OUR COUNTY AUDITOR, UH, MS. CLEOD THERE, METH.
AND, UH, JUST, UH, THIS IS, UH, SOMETHING THAT, UH, AS WE GET INTO IT, I'LL TRY NOT TO SAY MORE THAN I MESS IT UP, BASICALLY.
BUT, UH, IT IS SOME ALTERNATIVE PRODUCTS THAT, UH, WE MIGHT BE ABLE TO USE IN FOR OUR PART-TIME EMPLOYEES.
THE FIRST PART, I DON'T KNOW WHAT YOU'RE GONNA DO.
AND, UH, AND THEN SOME OTHER ALTERNATIVE, UH, OPPORTUNITIES THAT, UH, THE TREASURER, UH, MAY BE INTERESTED IN.
AND THEN JUST SOME ANNUITY PRODUCTS ARE, NOT ANNUITY PRODUCTS NECESSARILY, BUT SOME SAVINGS PROGRAMS THAT, UH, COULD BE AVAILABLE TO COUNTY EMPLOYEES.
I KNOW YOU'RE USED TO APPEARING BEFORE SCHOOL BOARDS, I THINK, IN CITY COUNCILS.
AND, UH, THESE GUYS ARE A LOT NICER THAN SCHOOL BOARDS.
DO YOU WANT TO INTRODUCE YOUR, YOURSELF AND YOUR PARTNER THERE? WILL YOU? YES, SIR.
I'M ONE OF THE PARTNERS AT TCG AND THE CHIEF INVESTMENT OFFICER AND OPERATING OFFICER.
AND WITH ME IS CHRIS MOLINS, UH, WHO IS ONE THIS AND CHRIS.
EASY, EASY FOR THE NOTES, UH, FOR THE MINUTES, WHO WORKS WITH A LOT OF OUR, UH, COUNTY CLIENTS, CITY, COUNTY, UH, GOVERNMENT, MUNICIPALITY, UH, ORGANIZATION.
SO WE'RE AN ORGANIZATION THAT SPECIALIZES IN WORKING WITH GOVERNMENTAL ENTITIES, WHETHER IT'S, UH, SCHOOL DISTRICTS, WHETHER IT'S CITIES, COUNTIES, WHATEVER IT MAY BE, UH, ON RETIREMENT ACCOUNTS AND DIFFERENT WAYS TO, UH, INVEST THEIR MONEY, HELP THEM SAVE SOME MONEY THROUGH SOME UNIQUE, UH, PROGRAMS AS WELL.
UM, THE, THE FIRST SECTION OF THIS REALLY, YOU KNOW, TALKS A LITTLE BIT ABOUT WHO TCG IS.
UH, AND I'LL JUST, YOU KNOW, A LITTLE BIT OF THE BACKGROUND THERE AS YOU CAN.
MAYBE JUST THUMB, THUMB THROUGH THAT.
UH, WE MANAGE ABOUT $1.4 BILLION, UH, FOR GOVERNMENTAL ORGANIZATIONS TO THESE A UNIQUE FICA PLANS.
AND MR. WOOD MENTIONED, OR RETIREMENT ACCOUNTS.
UH, WE SERVICE OVER 300,000 PARTICIPANTS, UH, THROUGH THESE, UH, PLANS AS WELL.
AND THAT INCLUDES OVER 700 DIFFERENT PLANS, WHETHER IT'S 4 57, 4 0 3 D, FICA, UH, THESE DIFFERENT PLANS THAT ARE SET UP.
A MAJORITY OF THESE ARE IN TEXAS.
UH, WE'RE BASED OUT OF AUSTIN.
WE HAVE AN OFFICE IN, IN DALLAS AND IN HOUSTON AS WELL.
AND A MAJORITY OF THESE ARE RAN THROUGH A CO-OP THAT WE HAVE THAT HAS ALMOST 300 DIFFERENT PLANS JUST INSIDE THIS CO-OP.
AND IT'S ONE OF THE LARGER CO-OPS, UH, IN THE STATE OF TEXAS.
WE FEEL LIKE IT'S THE BEST PRICE AS FAR AS FEES TO THE PARTICIPANTS, TO YOUR EMPLOYEES.
'CAUSE YOU'RE ABLE TO PULL IN ALMOST $300 MILLION.
UH, SO FOR US TO SIT HERE AND, AND SAY IT'S, IT'S ONE OF THE LOWER COSTS AND PROBABLY THE BEST PLAN THAT'S AVAILABLE TO GOVERNMENTAL ENTITIES.
IT'S NOT JUST SOMETHING WE, WE SAY, IT'S SOMETHING THAT WE, WE DO BELIEVE AND, AND WHAT WE'VE SEEN AND EXPERIENCED ACROSS THE STATE, UH, AS WELL.
AND REALLY IN, IN THIS, THIS CO-OP, THERE ARE A COUPLE DIFFERENT PLANS THAT WOULD BENEFIT, UH, THE COUNTY.
THE FIRST ONE THAT YOU HAVE, UH, LISTED IN HERE, UH, AND WE'LL JUST GO BY TABS JUST TO MAKE IT EASY, IS THE 4 57 RETIREMENT SAVINGS PLAN.
SO YOU GUYS HAVE A RETIREMENT PLAN, UH, FOR YOUR EMPLOYEES, UH, WHICH IS VERY GOOD AND THAT MANY OF YOUR EMPLOYEES TAKE ADVANTAGE OF IT.
UH, YOUR, I BELIEVE YOUR CURRENT PROVIDER IS, UH, VALID
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FOR THESE EMPLOYEES, WHICH WE'RE NOT INTO SELLING ANNUITIES.WE'RE NOT INTO SELLING INSURANCE PRODUCTS.
OUR GOAL IS TO GIVE EMPLOYEES A LOW COST MUTUAL FUND ALTERNATIVE TO THE HIGH PRICE ANNUITIES THAT ARE OUT THERE FOR A LOT OF FOLKS.
THIS PARTICULAR CO-OP HAS ABOUT $150 MILLION.
OTHER INVESTMENTS, ALL LOW FEES, NO COMMISSIONS ARE PAID.
IT'S OVERSEEN BY AN INVESTMENT COMMITTEE, UH, MADE UP OF, UH, PRIMARILY SCHOOL, UH, SUPERINTENDENTS AND OR CFOS THAT OVERSEE US AS THE INVESTMENT ADVISOR.
UH, IT'S BID OUT, UM, YOU KNOW, HOWEVER MANY YEARS SO THAT THEY MAKE SURE THAT WE KEEP FEES LOW.
UH, EVERYTHING IS ONLINE FOR YOUR PARTICIPANTS.
AGAIN, VERY LOW COST, VERY HIGH PERFORMING FUNDS THAT ARE INSIDE OF THIS PLANT.
AND THE WHOLE CO-OP WAS SET UP, YOU KNOW, BY PUBLIC EMPLOYEES.
IT'S OVERSEEN BY PUBLIC EMPLOYEES, AND IT'S FOR THE BENEFIT OF, YOU KNOW, THEIR FELLOW PUBLIC EMPLOYEES.
UH, I, I MAY INTERRUPTING RONNIE, YOU MAY HAVE IN KAREN AS WELL.
I BELIEVE MORE THAN ONE, UH, RETIREMENT PLAN, UH, OTHER THAN THAT IS THE ONE I SEE.
THAT'S, THAT'S THE MAIN, BUT, OKAY.
SO YOU'RE LOOKING AT PROBABLY THE LAW THAT REQUIRES THAT WE OFFER MORE.
I'M SORRY? IS THERE NOT A LAW OR A FEDERAL REQUIREMENT THAT WE OFFER MORE THAN ONE? NO, SIR.
UM, AND, YOU KNOW, THE, THE, THE PROVIDER HAS A FIDUCIARY RESPONSIBILITY AND LIABILITY FOR THE PLAN THAT, UH, I'D BE WILLING TO BET THAT WITH THE CURRENT PLAN COMPARED TO WHAT WE HAVE, UH, THROUGH THIS CO-OP, IT'S PROBABLY AT LEAST HALF.
IT'S CUTTING THE FEES IN HALF VERSUS WHAT, UH, THEY'RE PROBABLY PAYING NOW.
WHEN YOU ROLL EVERYTHING IN, UH, THERE'S NO SURRENDER CHARGES.
YOU KNOW, ON PAGE, UH, 12, WE TRY TO PROVIDE AS MUCH, UH, GUIDANCE TO EMPLOYEES.
WE'RE REALLY BIG, UH, ON INVESTMENT AND RETIREMENT READINESS INITIATIVES.
WE ACTUALLY HAVE A, A GENTLEMAN IN OUR OFFICE, HIS SOLE JOB IS TO GO AROUND AND EDUCATE EMPLOYEES AND PROVIDE, UH, SEMINARS, INVESTMENT TOOLS, WHATEVER IT MAY BE SITTING ON THE, THE, THE ORGANIZATION, YOU KNOW, THE DIFFERENT BUILDINGS.
SO HE WOULD TRAVEL AROUND TO DIFFERENT CAMPUSES, UH, AND LOCATIONS THAT YOU GUYS HAVE, UH, AROUND THE COUNTY.
SO EDUCATION IS REALLY BIG FOR US AND IS ONE OF THE MAIN DRIVERS AS WELL.
AND YOU OFFER MORE THAN 1 4 57 PLAN, CAN YOU? YES, SIR.
UM, MOST FOLKS, SOME FOLKS DO, A LOT OF FOLKS DON'T BECAUSE SOMEBODY HAS TO BE A FIDUCIARY TO THAT, UH, TO THAT PLAN.
WE ARE AN INDEPENDENT INVESTMENT ADVISOR, SO WE CAN BE THE FIDUCIARY ON THE PLANE.
THEY'RE SELLING THEIR OWN FUNDS, THEIR OWN STUFF.
SO ULTIMATELY THAT ROLLS UP TO YOU GUYS, UM, AT THE COUNTY OFFICE.
SO WE WOULD BE THE ADVISOR FOR EITHER FOR ALL OF IT, OR YOU CAN MOVE THE FUNDS, YOU CAN TRANSFER.
THERE'S A VARIETY OF DIFFERENT THINGS THAT YOU CAN DO TO BENEFIT EMPLOYEES, BUT MOST FOLKS TRY TO TRY TO LIMIT IT, OTHERWISE IT BECOMES A, A FREE FOR ALL.
MAYBE, YOU KNOW, COMMISSION AGENTS ARE, ARE GOING AROUND TO THE DIFFERENT LOCATIONS AND TALKING TO VARIOUS EMPLOYEES AS WELL.
ONE OTHER THING YOU MIGHT HAVE MENTIONED, CHRIS, AND THIS IS WHERE IT TALKS ABOUT THE REGION 10, AND SOME OF YOU PROBABLY HAVE LOOKED AT THAT, YOU MIGHT GIVE A BRIEF HISTORY OF HOW YES.
SO, UM, IN THE, IN SCHOOLS THERE HAVE SET UP 20 SERVICE CENTERS, UH, THAT PROVIDE SERVICES, UH, ACROSS THE STATE TO THEIR DISTRICTS.
AND THE ONE OUT OF THE DALLAS AREA IN RICHARDSON IS THE REGION 10 EDUCATIONAL SERVICE CENTER.
AND THIS CO-OP STARTED, I THINK BACK IN 2001, UH, OFFERING LOW COST RETIREMENT PLAN, UH, OPTIONS TO THEIR DISTRICTS.
AND THEY STARTED, UH, MAINLY IN THAT DALLAS AREA.
IT HAS NOW GROWN TO, UH, OTHER SERVICE CENTERS ARE PART OF IT, OTHER STATE AGENCIES, UH, OR A PART OF IT.
HARRIS COUNTY DEPARTMENT OF EDUCATION, UH, IS A PART OF IT.
SO IT'S GROWN TO HUNDREDS AND HUNDREDS OF PARTICIPATING EMPLOYERS.
UH, LIKE I SAID, THERE'S ABOUT 12, UH, SUPERINTENDENT AND, UH, CHIEF FINANCIAL OFFICERS THAT SIT ON THIS COMMITTEE.
THEY OVERSEE MUCH LIKE, UH, YOU GUYS DO HERE IN A ROLE THAT KEEPS US,
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UH, RESPONSIBLE FOR THE INVESTMENT RECOMMENDATIONS WE'RE MAKING.UH, WE CAN BE FIRED AT ANY TIME, UH, AS TCG IF WE'RE NOT KEEPING THAT HARD JOB.
BUT IT'S BEEN IN EXISTENCE FOR, I GUESS NOW ALMOST 15 YEARS NOW.
UH, AS THAT COMMITTEE THAT IS OVERSEEN, IT'S REALLY GROWN FROM, FROM, IT WAS A STARTUP, SO IT GREW FROM ZERO, UH, DOLLARS AND, AND ZERO PARTICIPANTS TO OVER, YOU KNOW, A COUPLE HUNDRED THOUSAND AND A COUPLE HUNDRED MILLION DOLLARS WORTH OF, UH, WORTH THE ASSETS THAT HAVE BEEN PULLED FROM ACROSS THE STATE.
SO JUST TO MAKE SURE WE'RE ALL ON THE SAME PAGE CAN BE OFFERED IN ADDITION TO THE PROGRAM THAT WE NOW HAVE, THAT IF THE COURT DECIDED TO MOVE FORWARD.
IT CAN BE OFFERED IN ADDITION TO IT GONNA BE OFFERED, UM, AS THE SOLE PROVIDER, UH, YOU CAN KEEP, PARTICIPANTS COULD KEEP THEIR ASSETS WITH VALID VERSUS COULD MOVE THEIR ASSETS OVER WHICHEVER, UH, ONE OF THE ARRANGEMENTS, UH, THE COUNTY WANTED TO.
QUESTION IS, WHO AND WHEN WOULD THIS HAPPEN TO, TO EDUCATE THE PEOPLE THAT THEY HAVE A CHOICE? WHAT THE CHOICE IS, WHAT THE RAMIFICATIONS ARE.
UH, WHAT THEY MAY AND WIN OR MAY LOSE AT THE END OF THE DAY.
SO WE WOULD HAVE, UH, A COMMUNICATIONS PLAN THAT WE WOULD SET UP.
PARTICIPANTS WOULD BE NOTIFIED EITHER, YOU KNOW, VIA E OR BOTH VIA EMAIL THROUGH THE MAIL.
UH, WE WOULD HOST SEMINARS EITHER AT NIGHT, DURING THE DAY, WHICHEVER BEST FITS, UH, THE ORGANIZATION.
UH, WE'RE BIG BELIEVERS IN EDUCATING, AND WE'LL SIT DOWN WITH OUR FOLKS ARE TRAINED TO SIT DOWN ONE-ON-ONE AND GO OVER WHAT YOUR OPTIONS ARE.
UH, WE'RE ALSO, I'M A CERTIFIED FINANCIAL PLANNER.
SEVERAL OF OUR STAFF ARE CERTIFIED FINANCIAL PLANNERS.
SO WE CAN TALK ABOUT NOT ONLY WHAT YOUR RETIREMENT ACCOUNT IS, BUT ALL OF YOUR, YOU KNOW, MAYBE YOUR SPOUSE'S RETIREMENT ACCOUNT OR SOMETHING ELSE THAT MAY BE OUT THERE, UH, AS WELL.
AND THEN THE, UH, AS FAR AS, YOU KNOW, JOINING IT, LIKE I MENTIONED, IT'S THROUGH A CO-OP.
UH, SAY YOU COULD JOIN THROUGH THE, UH, THROUGH INTERLOCAL AGREEMENT, UH, AS WELL.
AGAIN, WE ASSUME THE FIDUCIARY LIABILITY, WE STEP IN BECAUSE WE'RE HOSTING THE COMMITTEE MEETINGS.
UM, WE'RE DOING THE, THE QUARTERLY REVIEWS.
WE'RE PROVIDING THIS GUIDANCE, UH, ALONG THE WAY THERE.
RONNIE, YOU OR KAREN MAY BE ABLE TO ANSWER SOMEBODY FOR THAT MATTER.
HOW MANY PARTICIPANTS DO WE HAVE IN, OR, YOU KNOW, OFF? I CAN GO FIND OUT REAL QUICK.
WHAT I DO ABOUT, WE JUST RUN, I DON'T KNOW THAT WE HAVE ALL THAT, BUT SO AND SO AGAIN, WE'RE BIG INTO, WE, LIKE AT THIS POINT, THE, THE CO-OP HAS GOTTEN LARGE ENOUGH, THE FEES HAVE GOTTEN LOAN, MOST PARTICIPANTS CAN GET OUT THE DOOR ALL IN LESS THAN 1%.
AND THAT I KNOW IS ONE OF THE LOWEST IN THE STATE.
UH, AND IT'S DEFINITELY LOWER THAN A VALID PARTICIPANT CAN GET THROUGH.
SO, UH, THAT'S THE, THE BENEFITS THERE OF GOING THROUGH A CALL OFF.
AGAIN, EVERYTHING ONLINE EDUCATION IS KEY.
UH, WE BRING OUT A TEAM TO EDUCATE NOT ONLY ON AN INITIAL ROLLOUT, BUT ONGOING, WHETHER IT'S QUARTERLY, ANNUALLY, WHATEVER WORKS BEST, UH, FOR THE STAFF HERE.
REBECCA, DO YOU HAVE ANY QUESTIONS, KAREN? NO, SIR.
SO I'LL HAVE TO SEE FIRST OFF, WHERE WE HANDLE THE EXTRAS, ADDING ALL THIS.
SO THE, OTHER THAN BEING A SECOND ALTERNATIVE, UH, THE MAIN DIFFERENCE IS, UH, THE FEES ARE LOWER BASED ON WHAT YOU'VE STATED.
AND TCG ASSUMES ALL THE JUDICIARY RESPONSIBILITY, WHEREAS WITH THAT, WE, THE COURT ASSUMES JUDICIARY RESPONSIBILITY.
THE PLAN SPONSOR, WHOEVER'S PROVIDING
NOW, LEGALLY, YOU CANNOT GET RID OF A HUNDRED PERCENT OF THE FIDUCIARY, BUT WE STEP IN THE WAY AS THE FIDUCIARY, UH, AS THE FIRST LINE OF DEFENSE.
IF SOMETHING WAS TO EVER ARISE OR, UH, THE COURT WAS EVER SUED, UH, YOU KNOW, BY ONE OF THE PARTICIPANTS FOR WHATEVER IT MAY BE.
SO THAT WOULD BE IN THE CONTRACT.
THAT WOULD BE IN THE CONTRACT.
WE CARRY THE INSURANCE, WE HAVE THE PROCEDURES IN PLACE ON THE, ON THE MONIES IN VALID.
THERE WOULD BE NOTHING IN BETWEEN THAT RULE DISTRICT TO THE COURT.
WE HAVE, AND WHAT WE'VE SEEN ACTUALLY WITH, WITH MOST OF THE PLANS THAT WE'VE TAKEN, WE'VE TAKEN OVER IS BY THE TIME WE'VE GOTTEN OUT AND WE'VE EDUCATED FOLKS AND WE INVITE THE SPOUSES, WE DO 'EM AT NIGHT.
UM, WE'VE, YOU KNOW, FIGURED OVER JUST IN THE, OUT OF THE RICHARDSON
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LOCATION OVER THE LAST YEARS, SEVERAL YEARS, WE'VE EDUCATED THROUGH SEMINARS OVER 10,000 EMPLOYEES THAT HAVE BEEN WILLING TO DRIVE AN HOUR TO AN HOUR AND A HALF TO COME IN FOR TWO HOUR, TWO AND A HALF HOUR SEMINARS.UH, SO PEOPLE WANT, THEY DON'T KNOW WHERE TO GO TO, TO, TO FIND INFORMATION.
UM, AND SO WE FEEL LIKE THAT'S ONE OF OUR, IN ADDITION TO LOW COST, IT'S ONE OF THE KEY DIFFERENTIATORS AND EVERYTHING IS ONLINE AS WELL.
SO IF YOU'RE APPROVING DISTRIBUTIONS, AND I DON'T KNOW WHO, WHO DOES THAT, LOANS, HARDSHIPS, THINGS OF THAT NATURE, THAT'S SOMETHING THAT WE, AS A FULL SERVICE ADMINISTRATION COMPANY, WE JUST TAKE ON ALL THAT AS WELL.
WE JUST WENT THROUGH, UM, OPEN ENROLLMENT, HR HANDLES, SETTING EMPLOYEES UP AND HAVING A ROOM RESERVED FOR ALL OF THEM, SET UP AT DIFFERENT TABLES.
AND THE EMPLOYEES COME IN AS THE DIFFERENT DEPARTMENTS CAN RELIEVE THEM TO LET THEM COME IN AND THEY GET TO SIT DOWN AND TALK ABOUT THE PLAN, OR IF THEY DON'T HAVE A PLAN AND WANT TO KNOW ABOUT THE PLAN.
AND THEN, UM, THEY SIGN THE PAPERWORK.
HR DOES THE MAINTENANCE IN THE TREASURER'S OFFICE FOR PROCURES THAT PAYROLL.
UH, WE JUST, I JUST SIGNED THE PAYROLL AUDIT, SO IT SHOULDN'T TAKEN THAT LONG TO TELL US HOW MANY PEOPLE ARE SIGNED UP WITH BALLOT.
'CAUSE IT'S FRESH NEWS, YOU KNOW, SINCE WE JUST DID IT.
WE WOULD SEND SOMEBODY TO SIT AT THAT BENEFITS FAIR, AND THEN IF SOMEBODY EVER LEFT AND THEY NEEDED A DISTRIBUTION, THOSE FORMS WOULD GO THROUGH US AND PROCESS BY US.
RONNIE, I TOLD 'EM, WE JUST GOT THROUGH WITH PAYROLL, SO YOU WISH A FRESH REPORT.
WELL, THANK YOU FOR THAT VOTE OF CONFIDENCE.
WE HAD 29 PARTICIPANTS OUT OF THE 551 PEOPLE THAT GOT PAID, SO THAT'S ABOUT 5.26%.
AND THERE IS ONE PERSON THAT STILL PARTICIPATES IN THE NATIONWIDE PLAN FROM WHICH THE COUNTY HAD MIGRATED A NUMBER OF YEARS AGO.
ONE OTHER QUESTION, UH, AND THIS IS A DISCLOSURE, UH, UH, FROM MY, ON MY PART, UH, DOES REGION 10 RECEIVE ANY FUNDS FOR BEING THE PARTNER? WE WOULD, UH, UH, IN AN INTERLOCAL AGREEMENT.
REGION 10, I BELIEVE GETS 10 CENTS PER PERSON PER MONTH, UH, TO OVERSEE THE CO-OWNER.
AND THE REASON I'M ASKING THAT IS TO MAKE, I'M GOING TO DISCLOSE THAT I'M ON THE REGION 10 BOARD OF DIRECTORS.
UH, AND SO I WOULD ABSTAIN FROM ANY VOTE THAT THIS WOULD OCCUR, AND IT'S A NON-PAYING JOB, YOU KNOW, SO IT'S, UH, BUT I WANTED TO MAKE SURE THAT WAS, THAT WAS BROUGHT OUT JUST FOR, UH, PUBLIC PURPOSES.
SO THEY, THEY DON'T, UH, IT DOESN'T MATTER HOW MUCH SOMEBODY CONTRIBUTES, SO THEY'RE NOT, YOU KNOW, PUSHING, TRYING TO SQUEEZE EVERY LAST DOLLAR, UH, DOLLAR OUT OF EMPLOYEES OR ANYTHING OF THAT NATURE.
THEN THE, THE NEXT PROGRAM, UH, IS A I ALTERNATIVE PLAN.
AND THIS IS, UM, THE WAY THE, THE IRS STATUTES AND THE, THE LAW IS WRITTEN THAT YOUR PART-TIME, UH, EMPLOYEES, UH, CAN CONTRIBUTE TO SOCIAL SECURITY OR A SOCIAL SECURITY LIKE ALTERNATIVE.
AND SO YOU DO HAVE A SET OF EMPLOYEES THAT RIGHT NOW THE, UH, THE COURT IS PAYING INTO SOCIAL SECURITY ON BEHALF OF THAT EMPLOYEE OF ABOUT 6.5%.
THE PERSON IS ALSO PAYING ROUGHLY THE SAME AS WELL.
SO ITS ALL GOING IN WITH A FCO ALTERNATIVE PLAN.
THAT CLASS OF EMPLOYEE ONLY HAS TO CONTRIBUTE A TOTAL BETWEEN THE EMPLOYEE AND EMPLOYER OF 7.5%.
AND THEN THAT 7.5% GOES INTO A RETIREMENT ACCOUNT THAT THE EMPLOYEE, JUST LIKE A 401K OR 4 57 IS INVESTED.
AND THAT THAT EMPLOYEE WOULD HAVE ACCESS TO THOSE DOLLARS ONCE THEY SEPARATE EMPLOYEE, UH, EMPLOYMENT FROM THE COURT.
THE BENEFIT OF A PROGRAM LIKE THIS, IN MOST INSTANCES, THE EMPLOYEE, BECAUSE THEY'RE GETTING ALL OF THE RETIREMENT DOLLARS, THEY'RE PAYING THE FULL 7.5%.
SO FOR THE EMPLOYER, IT'S A SAVINGS OF 6.5% OF TOTAL, UH, PART-TIME, UH, PAY.
AND THAT'S TRULY, THAT'S, THAT'S THE MAIN BENEFIT OF A FICO ALTERNATIVE.
AND THAT'S ANOTHER PLAN SET UP TO THE REGION 10 CO-OP, AGAIN, HAS CLOSE TO A HUNDRED MILLION DOLLARS.
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UH, MOST OF THESE BALANCES AREN'T LARGE.I THINK THE AVERAGE BALANCE ON OUR ENTIRE PLATFORM IS ABOUT $500.
MOST OF THESE PLANS END UP IN, AGAIN, HIGH PRICE ANNUITIES, THE FEES EAT 'EM AWAY, OR IF THEY HAVE A HUNDRED DOLLARS, THE FEE IS A FLAT FEE.
WELL, THAT TURNS OUT TO 9% A YEAR IF YOU HAVE ONLY A HUNDRED BUCKS.
UM, AND SO, UH, THE WAY THE REGION 10, UH, COMMITTEE WANTED TO SET IT UP, AND THE WAY WE ADMINISTER IT, IT IS A, A FEE BASED OFF OF HOW MUCH YOU MANAGE OR HOW MUCH IS IN YOUR ACCOUNT.
IT'S A ONE AND A HALF PERCENT SOMEBODY.
SO IF SOMEBODY HAS, YOU KNOW, A HUNDRED DOLLARS, THEN THEY'RE PAYING A BUCK 50 A YEAR, UH, IN THAT ACCOUNT.
SO SCALE IS BASED OFF OF THE SIZE.
SO, AND, AND THE FIRST PAGE HERE, YOU TALK ABOUT OVER 75 PARTICIPATING DISTRICTS, THAT'S SCHOOL DISTRICTS, THAT WOULD BE SCHOOL DISTRICTS THAT WOULD BE, UH, I THINK THERE'S A COUPLE, UH, COUNTY, UH, OFFICES, CITY, COUNTY OR OTHER ORGANIZATIONS OUTSIDE THE SCHOOL DISTRICTS AS WELL.
AND ONE OF THE REASONS THERE'S SUCH A SMALL NUMBER IS MOST SCHOOL DISTRICTS DO NOT PAY SOCIAL SECURITY.
UH, SO THERE'S NOTHING FOR THEM TO, WELL, MOST OF 'EM WILL PAY ON THE, UH, THE PART-TIME AND SUBSTITUTES.
UM, AND SO, UH, THEY WOULD THEN OPERATE, THEY WOULD THEN MOVE OVER TO THE, THE F COMPLAIN.
BUT THIS IS ONE THAT WE HAVE SEEN A VERY SIGNIFICANT INCREASE IN THE NUMBER OF FOLKS OVER THE LAST SEVERAL YEARS AS IT'S BECOME MORE AND MORE, UH, DISCUSSED, UH, YOU KNOW, BUDGETS, IT WAS ALMOST SLOW TO UPTAKE BECAUSE PEOPLE DIDN'T, THEY WERE SCARED THAT, WELL, WHAT IF THAT ONE PERSON NEEDED SOCIAL SECURITY? WAS I, WAS I HURTING THAT PERSON? UM, BUT THEN AS WITH MANY THINGS, BUDGET COMES ALONG AND YOU START LOOKING AT THE RESOURCES THAT ARE AVAILABLE TO THE EMPLOYERS, IT STARTS TO MAKE SENSE THAT, YOU KNOW, MAYBE NOT SPENDING THAT MONEY AND SENDING IT TO SOCIAL SECURITY FOR THAT ONE OR 2% OF THE FOLKS THAT MAYBE BENEFIT THE OTHER 98% DON'T BENEFIT FROM HAVING THAT MONEY.
AND THEN A HUNDRED PERCENT OF THE EMPLOYER BENEFITS, UH, FROM NOT HAVING TO, TO SPEND THAT MONEY AS WELL.
BUT IT GOES INTO AN ACCOUNT, IT'S READY FOR THE EMPLOYEE WHEN THEY WANT THE MONEY AND THEY SEPARATE, UH, FROM THE ORGANIZATION, THEY HAVE ACCESS TO THOSE DOLLARS, OR THEY CAN KEEP IT IN THE RETIREMENT ACCOUNT SO THEY CAN PULL IT OUT AND ROLL IT OVER AND DO WHATEVER THEY WANT TO DO.
WHAT'S THE EXPERIENCE? DO PERCENTAGE PULLS IT OUT OR DO YOU HAVE THAT RIGHT ON TOP? MOST FOLKS DON'T PULL IT OUT.
MOST FOLKS IN, THEY LEAVE IT IN THERE, THEY ROLL IT INTO ANOTHER, THEY ROLL IT INTO ANOTHER ACCOUNT BY, OR YES, SIR.
OR MAYBE THEY BECOME FULL TIME AND THEY ROLL IT INTO THE 4 57 THERE WITH THE EMPLOYER.
SO WE HAVE A LOT OF FOLKS THAT DON'T REALIZE IT UNTIL LATER THAT THEY, THEY MAKE, HAVE ACCOUNT, THEY, UH, REMEMBER THAT THEY WERE A SUBSTITUTE, AND THEN THEY, THEY'VE GOTTEN A STATEMENT AND, UH, SO IT'S MAYBE JUST A COUPLE HUNDRED BUCKS.
AND SO THEY ROLLED IT OVER THE REST OF THEIR RETIRE ACCOUNTS.
IT'S NOT JUST GIVING AWAY SOCIAL SECURITY, THE DEFINITION OF A PART-TIME EMPLOYEE, I BELIEVE IT WOULD BE 20 OR LESS HOURS, UH, 29.
SO SOMETHING WE'VE TO CLARIFY.
AND IT WOULD BE OFF OF DIFFERENT CLASSES.
UH, THERE'S A SPECIAL AGREEMENT THAT YOU WOULD'VE FILED WITH THE STATE CALLED THE TWO 18 AGREEMENT YEARS BACK.
AND SO IT WOULD, WHAT CLASS OF EMPLOYEES WOULD BE ABLE, OKAY.
YOU GOT CLUE ON THAT, RIGHT? WHAT'S AGREEMENT THAT THEY FILE? HOW, PARDON ON OUR, WHAT, WHAT WOULD WE HAVE FILED? OR YOU AGREE QUESTION.
AND YOU, YOU CAN REQUEST THAT FROM THE STATE VERY EASILY.
WHAT DID YOU SAY, COMMISSIONER? YEAH, I WAS JUST ASKING IF WE ANYBODY KNEW WHAT HER AGREEMENT WAS.
IF SHE KNEW THAT, THAT WOULD BE AMAZING.
I KNOW THERE IS, AT 1986, THERE WAS THE, THE ACT WHERE A ENTITY COULD ELECT AT THAT TIME TO TAKE, GET OUT OF SOCIAL SECURITY ALTOGETHER.
AFTER THAT, I NEVER HEARD OF ANOTHER ONE.
NO, THAT WAS THE ONLY ONE GOT.
WE, WE CAN SEND YOU, WE COULD SEND YOU THE ADDRESS OF WHO TO CONTACT AND WE'LL GET BACK WITH YOU.
THE TWO 18 AGREEMENT MIGHT HAVE BEEN SOMETHING THAT WAS FILED EVEN BEFORE THAT, BEFORE THAT, THAT ACT.
THERE WAS, SOMEONE ELSE ASKED ME IF WE HAD A, A TWO 18 AGREEMENT WHEN I FIRST GOT HERE, AND I NEVER COULD FIND ANYTHING IN THE OLD FALLS
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THAT I KNOW OF.SO, AND I MENTIONED WE'RE IN BETWEEN HR DIRECTORS RIGHT NOW, SO WE DON'T HAVE ANYONE IN HERE FROM THE HR DEPARTMENT, UH, GOT SOME CONTEMPORARY FOLKS THAT ARE FILLING IN AND, UH, SO THAT SOME OF THESE QUESTIONS, RIGHT.
WOULD BE DIRECTED TO THAT PERSON OBVIOUSLY AT, AT SOME POINT.
BUT SO YOU BASICALLY, THE EASIEST THING IS TO, UM, WHATEVER CLASS OF FOLKS THAT WOULD BE ELIGIBLE, LET'S JUST SAY YOUR PART-TIME STAFF, 29 HOURS, UNLESS THAT PARTICULAR CREW, WHATEVER THEIR TOTAL PAYROLL WAS FOR LAST YEAR, MULTIPLY THAT TIME, 6.5% AND THAT SAVINGS DIRECT TO THE BOTTOM LINE, THEN TAMMY IT EMPLOYEE ANSWER THIS.
ONE OF THE QUESTIONS I HAD WAS THE MONEY THAT THE COUNTY SETS ASIDE, WHAT DO WE DO WITH THAT MONEY? SO WHAT CAN WE DO ACTUALLY WHAT YOU WOULD, UH, WHAT TYPICALLY HAPPENS IS NOW INSTEAD OF DISTRICT OR THE, UH, THE COUNTY SENDING SIX POINT HALF PERCENT TO SOCIAL SECURITY, RIGHT? THEY WOULD STOP SENDING ANYTHING.
SO THAT WOULD JUST, WE LOVE SOCIAL SECURITY HERE.
IRS YEAH, THAT'S A SEPARATE DIFFERENT ISSUE.
SO WHAT WOULD HAPPEN IS OUT OF THE EMPLOYEES PAYCHECK, INSTEAD OF THEM SENDING SIX AND HALF PERCENT TO SOCIAL SECURITY, THEY WOULD SEND 7.5% TO THEIR OWN RETIREMENT ACCOUNT, AND THEN THE COUNTY WOULD JUST STOP SENDING ANYTHING.
SO IT WOULD TRULY JUST BE A SAVINGS INTO THE BUDGET THAT, UM, BUT WE COULD DO HALF OF THAT AT WHICH Y'ALL, YOU COULD DO.
UH, SOME FOLKS WILL DO THE DIFFERENCE.
SO CURRENTLY THE SOCIAL SECURITY RATE IS SIX AND A HALF, AND THE NEW RATE IS SEVEN AND HALF.
THEY'LL DO THE 1% SO THAT THE, THE EMPLOYEE ISN'T OUT ANY EXTRA IN THEIR OWN ACCOUNT, THEY'RE GONNA GET THE FULL SEVEN POINT HALF, BUT THEY'RE FINE SHIFTING THAT 1% BECAUSE IT GOES DIRECTLY BECAUSE IT GOES DIRECTLY INTO THEIR ACCOUNT.
ONE OF THE QUESTION, AND THE REASON I ASKED THAT QUESTION, WE, UH, PAY INTO THE TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM, WHICH IS A VERY SOUND SYSTEM.
I'M SURE YOU GUYS HAVE LOOKED AT IT PROPERLY, AND, UH, BUT UNFORTUNATELY, UH, FOR THE LAST SEVERAL YEARS, THE COUNTY HAS NOT BEEN ABLE, UH, TO INCREASE THE, UH, AMOUNT OF, OF, UH, THAT THE EMPLOYEE THAT THE RETIRED EMPLOYEES RECEIVE.
AND SO I'M, I'M GETTING IN SOME WILL TO I'M SURE QUITE A BIT OF, OR SOME CHAT AMONG OUR EMPLOYEES THAT RETIRED OUR RETIREES THAT WE NEED A, YOU KNOW, WE NEED AN ADJUSTMENT.
WE, YOU KNOW, 1% OR SOMETHING.
BUT AT THIS POINT IN TIME, AND TERRY WENT TO THIS MEETING AT THIS POINT IN TIME, I DON'T THINK WE'RE ACTUARILY TO THE POINT WHERE WE CAN DO THAT TO PUT LUMP SUM MORE MONEY INTO THAT.
AND THAT'S WHAT I WAS WONDERING, IF WE DECIDED TO DO THREE AND A HALF AND THREE AND A HALF, WHICH I MEAN, THAT'S THE DECISION THAT WOULD BE MADE DOWN THE WAY
SO YOU COULD, I MEAN, BASICALLY YOU WOULD BE SAVING MONEY BECAUSE YOU WOULDN'T BE SENDING HIM SOCIAL SECURITY.
SO THERE WOULD BE THAT CHUNK OF MONEY THAT WASN'T THERE YESTERDAY.
THAT COULD BE, THAT COULD BE, UH, TO THAT EXTENT THAT IT IS PLACED IN ANY WHICH WAY THAT THE COUNTY WANTED TO DO.
SO BE
SO THAT'S, YOU KNOW, THAT IS A WAY TO HELP.
AND I THINK FROM WHAT I UNDERSTAND, THEIR INVESTMENTS PAID OFF VERY WELL.
YOU KNOW, AND I THINK WE SHOULDN'T GETTING AN UPDATE.
EACH COUNTY HAS ITS OWN INDIVIDUAL PLAN.
I MEAN, WE'RE OKAY, BUT WE'RE JUST TO PROVIDE ANY COST ADJUSTMENT WITH FOLKS THAT AREN'T RETIRED.
SO ANYWAY, THAT'S ANOTHER VERY GOOD WAY.
AND THEY, THE THREE PLANS THAT WE TALKING ABOUT, THE FIRST ONE RETIREMENT ACCOUNT, IT OFFERS A LOWER COST OPTION THAN WHICH YOU CURRENTLY HAVE TO THE EMPLOYEE.
SO YOU'RE SAVING FEES AT THE EMPLOYEE LEVEL FOR THE EMPLOYER.
IT DOESN'T, DOESN'T DO MUCH OTHER THAN EXTRA PROTECTION ON THE FIDUCIARY SIDE, SOME LOWER COST OPTIONS.
THE FIGHT THOUGH, THAT THE PLAN ALTERNATIVE PLAN WE'VE BEEN TALKING ABOUT, THAT IS A DIRECT SAVINGS AND EXPENSES TO AND TO, TO THE COURT, TO THE COUNTY.
SO THAT IS ONE THAT IS NO ADDITIONAL COST.
[00:30:01]
IS LOWER, UH, EXPENSES INCREASE HIS SAVINGS.I'M SORRY TO INTERRUPT WITH ALL THESE QUESTIONS.
ANSWER ANYTHING YOU MAY HAVE CRITICAL.
AND THEN THE, THE LAST SECTION THAT YOU HAVE, THE MANAGED ASSET PORTFOLIO PROGRAM, UH, YEAH, YOU TALKED ABOUT SAVINGS FOR THE PARTICIPANT AND THAT FIRST OPTION SAVINGS TO ACCOUNTING COURT ON THE SECOND OPTION.
THE THIRD OPTION HERE IS MAKING MORE MONEY.
AND SO, UH, THIS IS SOMETHING WE'VE BEEN, I MENTIONED WE'VE MANAGED, UH, THIS IS ACTUALLY OUTDATED AS OF DECEMBER OF THE END OF 2016.
WE'RE, UH, ACTUALLY CLOSER TO 1.4 BILLION, UH, YOU KNOW, OVER THIS LAST MONTH.
SO, AND WHAT THIS IS, IS BASICALLY, UH, THE ORGANIZATION'S APPROACHED US WITH THE FACT THAT, AND I KNOW, YOU KNOW, THIS, LIMITED RESOURCES, LIMITED STAFF WHO CAN HELP THEM WORK ON INVESTING THE FUNDS AND WHETHER THAT'S WHICH INVESTMENT OF POOLS TO BE IN, WHETHER THAT'S IF YOU HAVE ANY EXCESS CASH OR, UH, FUNDS THAT YOU MIGHT NOT NEED IN THE NEXT NINE MONTHS OR 12 MONTHS.
COULD YOU BUY CDS OR BONDS? UH, WHO MANAGES, UH, WHO MANAGES THAT FOR, UH, THE ORGANIZATION? THERE'S A LOT OF AUDIT REPORTING.
UH, THE REPORTS THAT I ASSUME COME TO YOU GUYS, FINANCIAL REPORTING THAT COMES, UH, PERIODICALLY OR THAT HAS TO BE FILED.
THERE'S A LOT THAT GOES INTO, INTO JUST MANAGING THE TAXPAYER.
AND SO WE HELP WHAT'S THE, WHAT'S THE, UH, WHAT'S THE FEE ON THAT
WE HAVE ONE THAT'S A FLAT FEE THAT WE HELP WITH ALL THE REPORTING.
WE HELP WITH INVESTMENTS, PUTTING THE MONEY, UH, PUTTING MONEY TO WORK, DOING EVERYTHING OF THAT NATURE.
AND THEN WE HAVE ANOTHER FEE STRUCTURE WHERE YOU JUST SAID, YOU KNOW WHAT? WE DON'T WANT YOUR HELP ON ALL THAT OTHER STUFF, BUT HERE'S SOME EXCESS MONEY THAT, THAT WE HAVE, WHICH YOU GUYS MANAGE IT.
WE BONDS, CDS, COMMERCIAL PAPER, WHATEVER, UH, YOU GUYS CHOOSE.
THAT ONE IS BASED OFF OF JUST HOW MUCH WE ACTUALLY MANAGE.
AND THAT STARTS AT, UH, 10 BASIS POINT, UH, 10 BASIS POINTS.
SO 10TH OF 1% PLUS A LITTLE PERFORMANCE FEE IF WE HIT CERTAIN BENCHMARKS AND THE, AND THE, UH, AND THE, AND THE GUARANTEE OF THE MONEY, I MEAN THE INSURANCE, THE RISK, THE RISK FACTOR THAT THAT'S, SO WE OPERATE WITHIN THE PUBLIC FUNDS INVESTMENT ACT, AND WE OPERATE WITHIN THE LOCAL POLICY AND THE INVESTMENT POLICY SET FORTH BY THE, THE COURT AND THE COUNTY.
SO THE GUARANTEES THAT THERE ARE, I MEAN, WE CAN'T GUARANTEE ANYTHING.
UH, THE GUARANTEES THAT THERE ARE WOULD BE IN THE INVESTMENT PRODUCTS, UH, THAT WE WOULD PURCHASE.
SO IF IT'S A US TREASURY BOND OR IF IT'S A CD, U-F-F-B-I-C INSURANCE THERE.
SO WE PURELY ACT AS AN INVESTMENT ADVISOR HELPING AND OVERSEEING, UH, WHAT, WHAT SECURITIES ARE PURCHASED, WE'RE DOING THE DUE DILIGENCE.
WE'RE TRYING TO GENERATE ADDITIONAL YIELD, UH, THERE, UH, FOR, UM, SO THAT'S TYPICALLY AROUND 10 BASIS POINTS PLUS A LITTLE BIT THERE.
AND ON THE FLAT FEE, DEPENDING ON HOW MUCH, UH, IS AN ASSET AND HOW MUCH REPORTING AND, AND WHAT IS THAT TYPICALLY RANGES BETWEEN 12, YOU KNOW, MAYBE 12 TO $15,000 A YEAR.
SO HOW LEGAL IT IS, IT, EVERYTHING, MOST EVERYTHING WOULD BE LIQUID.
UM, WE CAN SELL IT AT ANY TIME.
SO JUST LIKE IF YOU GUYS, YOU KNOW, ISSUE BONDS OR ANY OF THE SCHOOL DISTRICTS OR THE CITIES THAT YOU SUPPORT, WHEN THEY ISSUE BONDS, SOMEBODY WANTS TO BUY 'EM OR SELL 'EM THE NEXT DAY, YOU CAN DO THAT AS WELL.
HOW DOES IT COMPARE TO TECH POOL? SO ACTUALLY IT, IT'S DIFFERENT IN THE FACT THAT WE OVERSEE, WE SIT AS AN INVESTMENT ADVISOR, SO WE'RE NOT SELLING A PARTICULAR PRODUCT OR A POOL.
WHAT WE WOULD ASSIST YOUR STAFF WITH IS WHICH POOL SHOULD YOU BE IN BASED OFF OF WHAT RISK? AND SO THERE'S VERY, WHERE YOU CAN TURN AROUND AND SAY THAT WE SHOULD BE IN TECHNICAL.
WE CAN TURN AROUND AND SAY, YOU SHOULD BE A LITTLE BIT INTO, WE WOULD NEVER SAY Y'ALL OUGHT TO BE A HUNDRED PERCENT TEXTBOOK, RIGHT? BUT WE WOULD SAY, YOU NEED A LITTLE BIT TACTICAL, BUT YOU TURN AROUND, YES, WE WOULD HELP THERE.
UH, WE PROVIDE REPORTING AT THE END OF EACH MONTH ON ALL THE POOLS THAT ARE OUT THERE.
OR IF WE SAY, OKAY, IT LOOKS LIKE YOU'VE GOT, YOU KNOW, X NUMBER OF DOLLARS THAT YOU'RE NOT SPENDING, WE WOULD LOOK AT, YOU KNOW, CASH FLOWS OR WHATEVER.
[00:35:01]
NINE MONTH, ONE YEAR, UH, YOU KNOW, 18 MONTH, WHATEVER IT MAY BE.AND THEN WE WOULD SHOP, GO OUT AND EXECUTE AND PROVIDE DOCUMENTATION THAT WE GOT THE BEST PRICING, UH, FOR VARIOUS BONDS OR, UH, WHATEVER MAY BE OUT THERE.
SO THERE A FEE EVERY TIME YOU INVEST SOMETHING? NO, SIR.
UH, THAT WOULD BE, IF WE DID THAT, THAT MEANS WE'D BE COMMISSIONED, WHICH MEANS WE COULDN'T ACCEPT FIDUCIARY LIABILITY BECAUSE WE DON'T ACCEPT ANY COMMISSION AND WE CAN BUY WHATEVER OR WHATEVER IS ALLOWED BY YOUR POLICIES.
UH, WE ACTUALLY ARE A FIDUCIARY, AND THAT'S A BIG DIFFERENCE FOR WHAT'S NORMALLY, UH, OUT THERE IN THIS MARKETPLACE.
WE DON'T BELIEVE IN COMMISSIONS.
SO IN COUNTY GOVERNMENT, THE, UH, I'M SORRY.
NO, I BELIEVED IN COMMISSIONS.
ON THE INVESTMENT SIDE, WE, SO, UH, IN COUNTY GOVERNMENT, THE, UH, TREASURER, MY LAW IS THE CHIEF INVESTMENT OFFICER FOR COUNTY, AND THEN HE HAD AN ADVISORY THAT'S MADE UP THE JUDGE AND THE AUDITOR WE RECENTLY MET.
AND, UH, SO RONNIE, I'D LIKE IF YOU HAVE ANY COMMENTS OR ANY QUESTIONS YOU'D LIKE, DISCUSS, WELL, I THINK JUDGE, IT DOVETAILS NICELY WITH WHERE WE'LL GO NEXT.
SO JUST WHENEVER YOU'RE READY TO MOVE ON, YOU CAN JUST, ANOTHER, JUST ANOTHER OPPORTUNITY, YOUR HONOR, A RESOURCE, AND WE'LL AGAIN, WE'LL WEAVE THIS INTO MY COMMENTS AND SHOW THE DIFFERENT SPOTS WHERE THEY WOULD, COULD SPECIFICALLY PLUG IN JUST ANOTHER INVESTMENT TOOL WE WOULD'VE IN OUR TOOLBOX.
AND, AND OUR GOAL IS, IS TO PURELY ACT AS AN EXTENSION OF HIS STAFF AND, AND OF YOUR STAFF IS IF YOU HAD, YOU KNOW, EXTRA DOLLARS LAYING AROUND TO HIRE SOMEBODY WHO COULD, YOU KNOW, MOVE MONEY OR HELP ASSIST AND PROVIDE RESOURCES, AND OUR TEAM AVERAGES ALMOST 20 YEARS OF INVESTMENT EXPERIENCE.
AND ALL THEY, SEVERAL OF 'EM, ALL THEY DO IS SIT IN FRONT OF THE COMPUTERS AND WE OUGHT TO BUY THIS AND MOVE MONEY OVER HERE.
WE OUGHT TO DO THIS RESEARCH AND, AND ALL THAT.
SO IT'S, IT'S PURELY AN EXTENSION, UH, OF YOUR ORGANIZATION.
DID THAT COUNT? I THINK THAT IS IT, UNLESS YOU GUYS HAVE ANYTHING FOR, FOR US.
YOU SAID YOU DO SOME OTHER COUNTIES THOUGH? UH, YES SIR.
WHO ARE THOSE? I'D HAVE TO LOOK, I'D HAVE TO SEND YOU A LIST ON THAT.
WELL, WE'VE BEEN TALKING WITH EAST CHAMBERS COUNTY, I KNOW FOR SURE FOR, UH, A WHILE DOWN THE HOUSTON AREA.
IT MIGHT SLOW A LITTLE BIT, BUT
MAYBE YOU'VE BEEN WITH CITIES FOR A WHILE MM-HMM
PERHAPS, BUT COUNTIES, YOU'RE KIND OF VENTURING INTO THAT NOW.
AND WE'VE DONE SOME WORK, UH, MANY YEARS AGO, UH, MORE ON CONSULTANT BASIS.
UH, WE PARTNERED WITH, UM, THE TEXAS CITY MANAGERS, YOU KNOW, ASSOCIATION, AND WE DID SOME FINANCIAL PLANNING, UH, AT THAT LEVEL.
WE HELPED, UH, THE CITY OF AUSTIN, THEY WERE CONVERTING, UH, I THINK THEIR, THEIR HEALTHCARE DISTRICT OUT.
SO THEY, UH, HIRED US ON A, A THREE YEAR CONTRACT TO COME IN AND PROVIDE, UH, FINANCIAL PLANNING.
UM, WE WORKED WITH THE CITY OF HARLINGEN.
UM, THEY ACTUALLY, THEY OPTED OUT OF, WAS IT TMRS YEARS AGO.
AND SO THEY HAVE THEIR OWN PLAN AND WE HELP OVERSEE, UH, THAT IN BROWNSVILLE WE DO SOME CONSULTING WORK ON THEIR RETIREMENT PLANS, WHEREAS RIVER AUTHORITY, UM, SO OUR BUSINESS HAS GROWN CONSIDERABLY OVER THE LAST SEVERAL YEARS.
WE'VE KIND OF EXPANDED, BUT 98% OF EVERYTHING IS SOME FORM OF A GOVERNMENTAL ENTITY.
THAT'S REALLY WHERE WE, WHERE WE SPECIALIZE IN AND REALLY WHO WE ARE.
IT'S JUST WHAT WE, WE DON'T DO A LOT OF BIG 4 0 1 KS OR CORPORATE TYPE WORK.
WELL, THEY GET, WE'LL SEE, WE'RE GOING TO SIT HERE AND THEY CAN LISTEN IN AND THEY CAN CHIME IN ONLINE.
THEY, WELL, AND WE, WE WILL GET TO THE AGENDA.
I, I WANTED TO GO AHEAD AND ASK IF, UH, AARON HAD ANY QUESTIONS? UH, YEAH.
CHRIS, HOW LONG HAVE YOU BEEN WITH TCNG? I'VE BEEN WITH TCG SINCE 2002, AND I'VE BEEN AN OWNER SINCE 2010.
AND THE COMPANY WAS FOUNDED IN 99.
AND REBECCA, DO YOU HAVE ANY? NO, I DON'T.
[00:40:01]
I MEAN, THIS IS SOMETHING WE'RE GONNA BE, UH, VERY DELIBERATE ABOUT, BUT WHAT WOULD BE THE NEXT STEPS FOR THE COURT IF WE CHOSE TO MOVE FORWARD WITH ANY OF THESE, UH, UH, PRODUCTS THAT YOU BROUGHT TO US? SURE.ON, ON THE, THE F ALTERNATIVE PLAN, THE NEXT STEP WOULD BE, UH, REQUESTING THAT TWO 18 AGREEMENT TO SEE WHAT WAS FILED WITH THE STATE YEARS AGO TO SEE WHAT ELIGIBLE CLASSES WOULD BE AVAILABLE.
AND THAT WOULD THEN DICTATE DOWN, UH, HOW MUCH SAVINGS IT WOULD BE, UH, TO THE COUNTY.
UM, ON THE 4 57, UH, THE DECISION ON WHETHER OR NOT, UH, THE COURT WANTS TO REPLACE VALID, MAKE IT ALONGSIDE, UH, LEC HAS A, A NEW OPTION AND WHAT THE, WHAT LEVEL, THE, THE FIDUCIARY ASPECT THEY WOULD LIKE TCG TO PLAY, UH, THERE.
UM, AND THEN ON THE, UH, MANAGING ASSETS, YOU KNOW, THE NEXT STEP FOR US TO, TO GET GOING, IF, IF, UH, YOU GUYS WANTED TO ENGAGE IN A RELATIONSHIP, IT'S JUST GETTING A COPY OF, UH, THE FINANCIALS SO THAT IF WE'VE STARTED DOING ANY REPORTING ASSISTANCE OR ANYTHING THERE, THAT WOULD JUST BE THE NEXT STEP THERE.
UH, I GUESS WE'LL BE IN CONTACT AND, UH, WHO NEEDS TO CHECK ON THE TWO 18? UH, I'LL BE, I'LL BE DOING THAT.
I'M, HER INFORMATION, I'M CONTACT, SO THEY'RE GONNA TALK.
THAT'S THE JOB TO HAVE AT THE STATE.
I THINK THIS GENTLEMAN JUST SITS THERE AND MONITORS THESE AGREEMENTS THAT HAVE BEEN FILED BACK IN THE SIXTIES AND SEVENTIES.
SO
WE MIGHT NEED TO, UH, SUBMIT THAT TO THEM AND LET THEM LOOK AT IT TO SEE IF IT NEEDS TO BE REARRANGED SOMEHOW OR SO.
AS WE MOVE FORWARD, UH, I'VE ALREADY DISCLOSED MY UH, UH, MAYBE CONFLICT OF INTEREST, BUT UH, I WILL FILL OUT A DISCLOSURE FORM.
UH, BUT I WOULD LIKE TO ASK JACKIE AND STEVE TO SERVE ON THE COMMITTEE WITH THE COMM, WITH THE TREASURER AND ALSO THE AUDITOR AND WITH SOMEONE FROM THE DA'S OFFICE TO WORK WITH YOU.
AND, UH, IF OTHER COMMISSIONER WANNA PARTICIPATE IN THAT, WE CAN CALL A MEETING.
UH, I MIGHT WORKING IN THE WORKSHOP MEETING THAT DO THAT.
WE CAN DO THAT BECAUSE THIS IS A DECISION THAT, UH, YOU KNOW, IT'S A CHANGE FOR US.
WE JUST WANNA MAKE SURE THAT WE DO DO RETIREMENT.
WHAT ELSE? COME BACK, BACK RECOMMENDATION OR WHATEVER.
WELL THANK YOU A LOT AND, UH, YOU'VE GOT HIGH EMAIL ADDRESS.
SO I COMPLETE OUT THE LOOP ON THIS AND UH, UH, OBVIOUSLY WE'LL JUST SEE WHERE IT, UH, WHERE IT GOES.
ALRIGHT, UH, NEXT ITEM WILL BE TO THIS, UH, DID, IS THIS YOUR DOCUMENT? YES, UH, THAT'S ACTUALLY THE THIRD ITEM.
AND THAT IS TO DISCUSS HAVING AN EMPLOYEE RECOGNITION IN DECEMBER, SERVE ALSO AS COUNTY PARTY AND, UH, COMMISSIONER.
YEAH, WE WERE IN AUSTIN A COUPLE WEEKS AGO.
SOME OF US WERE TRUCK GUYS, BUT UH, IT JUST CAME UP IN THE CONVERSATION AND I MENTIONED IT TO JUDGE ALSO, UH, RHONDA WHO WAS THERE WITH US AS WELL.
AND, UH, WHAT I UNDERSTAND FURTHER DISCUSSION ON THIS THAT THIS HAS ACTUALLY BEEN TALKED ABOUT THE BOARD AND NOTHING EVER GOT OFF THE GROUND.
SO I WANT TO TRY AND MAKE IT GET OFF THE GROUND.
SO, UH, I THINK IT'D BE A GOOD IDEA IF WE LOOKED AT MAYBE FORMING THE COMMITTEE.
I WOULD BE MORE THAN HAPPY TO SERVE ON IT.
[00:45:01]
SHE WOULD ON LOVE.PARDON?
I KNOW SHE'S GOT A LOT ON HER PLATE, BUT SHE MAY HAVE SOMEONE IN HER OFFICE HELP US WITH IT AS WELL.
JUST SO WE CAN KEEP CHECKING ON THE PURCHASING.
I BELIEVE WE HAVE SOME FUNDS SET ASIDE.
YEAH, LISA HAD MENTIONED THAT TO ME ALSO ABOUT 25,000.
LORI HAS TRIED TO GET THIS GOING BEFORE FLOYD, WE'VE TALKED ABOUT IT FOR THREE WEEKS.
IF SHE HAS THE PENS, SHE HAS THE CERTIFICATES.
IT'S JUST, I DO KNOW FROM, UH, LENGTHY CONVERSATIONS WITH HER THAT SET TRY AND SET IT IN DECEMBER WE CAME INTO, UH, VENUE CONFLICTS BECAUSE TO BE ABLE TO HOUSE THAT MANY PEOPLE FOR A PARTY IS, YOU'VE GOTTA PLAN WAY IN ADVANCE.
AND, AND THAT'S WHERE SHE WAS COMING UP WITH THE, YOU KNOW, HOLD UP ON GETTING THIS GOING.
'CAUSE SHE KIND OF HAD IT PRETTY MUCH IN THE WORKS.
IT JUST, IT WAS A PROBLEM GETTING IT AROUND THAT TIME OF YEAR.
SO THE BASIC PLANNING MAY, MAY BE ALREADY YEAH, I KNOW IN, UH, WELL I KNOW THERE WAS, THERE WERE PENS AND CERTIFICATES THAT WERE ALREADY ORDERED AND RECEIVED FOR EMPLOYEE APPRECIATION.
RHONDA, DO YOU HAVE COMMENTS? YOU ASKED TO, YOU MAY AWARE OF THIS, OF WHAT YOUR THOUGHTS? I I THINK IT'S SOMETHING THAT WE NEED TO HAVE FOR THE MORALE OF THE COUNTY EMPLOYEES.
I THINK FINDING A VENUE BIG ENOUGH AND A TIME FOR, THERE'S NO WAY THAT EVERYBODY COUNTY'S GONNA BE ABLE TO COME BECAUSE OF SHIFT WORK.
BUT IF YOU MAKE IT TO WHERE THOSE COULD JUST KIND OF DROPPING IN AND WE COULD HAVE A CENTRAL LOCATION TO HAVE TO HAVE IT, UM, CHRISTMAS PARTY WOULD'VE BEEN PERFECT IF WE COULD GET, GET A PLACE, YOU KNOW, DURING THAT TIME.
BUT I DON'T THINK, WELL THE SCHOOL, I DON'T THAT'S GONNA HOLD, COULD RHONDA, COULD YOU SPLIT IT? HAVE THE SHERIFF IN JAIL DO THEIR PARTY AND RECOGNITION AND THE COULD THAT WORKS.
MAYBE WE CAN SCHOOL THE HIGH SCHOOL.
WELL THAT'S WHAT LORI WAS TRYING TO GET WAS THE HIGH SCHOOL THAT, THAT THEY WERE GOING THROUGH THOSE RENOVATIONS AT THAT TIME.
THAT'S WHEN THE CONSTRUCTION STARTED.
THAT'S WHERE SHE WAS RUNNING INTO.
I DON'T MIND CHECKING WITH THEM TO SEE IF THEY MIGHT HAVE ANOTHER, WE ALSO HAVE VALLEY, BUT WE GOT DIFFERENT, A COUPLE OF DIFFERENT SCHOOLS I THINK WE CAN CHECKED INTO.
AND AS FAR AS UH, OUR FOLKS THAT ARE WORKING, UH, LIKE NIGHT SHIFT FOR EXAMPLE, WHAT WE DID CITY OF IRVING, UH, WE WOULD HAVE OUR REGULAR CHRISTMAS PARTY WITH EVERYBODY THEY COULD ATTEND AND THEN WE WOULD CATER SOMETHING LIKE SOUL MAN'S BARBECUE OR SOMETHING WHERE THOSE PEOPLE WORK.
LIKE AT THE COMMUNICATION CENTER, IT'S LIKE WHEN I DO APPRECIATION FOR, FOR MY STAFF, THAT'S WHAT I DO.
I SET IT FROM LIKE, I DO A DINNER DEAL, I DO A SLICE BECAUSE MY PEOPLE ARE WORKING FOR DIFFERENT, I DO IT AND I DO IT FROM LIKE FOUR TO SEVEN OR EIGHT.
AND THEN THAT WAY BOTH SHIFTS IF WORKING AND SWAPPING.
THAT'D BE ANOTHER WAY TO GET EVERYBODY INCLUDED EITHER WAY.
SO YOU'RE VOLUNTEERING TO TAKE THE LEAD, RHONDA, YOU'RE VOLUNTEERING TO HELP OUT AND LEAST YOU'RE VOLUNTEERING TO, OR AT LEAST DELEGATE SOMEONE TO ASSIST.
ANYBODY ELSE WHO SHE GONNA DELEGATE? IT'S JUST HER
SHE'LL FIGURE IT OUT, I GUARANTEE.
WELL, SINCE RIGHT NOW CASSIE'S IN THERE, I GUESS IN HR AND IT WAS KIND OF STARTED THERE, MAYBE WE CAN WORK WITH SOME OF THAT AND START PULLING SOME INFORMATION TOGETHER.
SO WELL HOPEFULLY WE'LL HAVE SOMEONE, AN HR DIRECTOR IN PLACE BY THE TIME ALL THIS COMES LIGHT AND THAT THAT WOULD BE A GOOD WAY FOR THEM TO MESH WITH EVERYBODY.
WE'RE GONNA NOMINATE THEM FOR THE COMMITTEE BEFORE THEY'RE EVERY MEETING HIRED.
AND SO IF ANYBODY ELSE WANTS TO VOLUNTEER, YOU KNOW, TO WORK WITH TERRY, UH, AND UH, RHONDA, WHOEVER, UH, ONE BOARD, COMMISSIONER, SHERIFF, YOU DON'T HAVE NOTHING TO DO.
I'LL HELP WITH ALL THIS STUFF.
YOU'VE GOT SOME MOTION SO YOU CAN CALL THE THE I HEARD THAT.
I DON'T, I I CAN PUT TIM MOORE ON THERE FOR YOU.
[00:50:01]
MOORE.SEPTEMBER 6TH AS FAR AS ALL LOGISTICS.
AND I'LL, I'LL REACH OUT TO THE SCHOOL DISTRICT, SEE IF THEY MIGHT, I HARASS YOU.
UH, MR. TREASURE HAD ASKED IF WE PUT, UH, ON THE AGENDA TO DISCUSS POTENTIAL INVESTMENTS FOR COLTON COUNTY EXCESS FUNDS.
SO TIMING IS PRETTY, PRETTY GOOD ON THIS.
AND SO THERE'S THREE COMPONENTS OF THIS.
ONE IS TO, UH, JUST GIVE A QUICK ORIENTATION FOR A COUPLE OF PAGES AND I'LL WALK YOU THROUGH EACH OF THESE PAGES REALLY QUICKLY.
AND SO WE'LL GET A LITTLE ORIENTATION, WE'LL GET A LITTLE BIT OF HISTORY, AND THEN WE'LL GET A LITTLE BIT OF LOOKING FORWARD.
SO ON PAGE ONE, YOU KNOW OUR TOTAL CASH, IT IS IN TWO DIFFERENT TYPES.
IT'S POOL CASH AND DESIGNATED DEDICATED, YOU KNOW, SPECIFIC THINGS.
AND THEN OUT OF THE POOL CASH, THE BIGGEST PART OF THAT IS THE GENERAL FUND.
AND THEN WE HAVE ALL OF THE OTHER POOLED FUNDS ON THE DESIGNATED.
THE ROAD BOND FUND IS, HAS THE MOST MONEY.
AND THEN WE HAVE THE OTHER DESIGNATED ACCOUNTS.
THE OTHER DESIGNATED ACCOUNTS END UP BEING A TWIG.
IN THIS PRESENTATION ON PAGE TWO, YOU CAN SEE THERE, WE'RE LOOKING AT THE POOL CASH AGAIN FROM THE FIRST PAGE.
POOLED CASH, ITS GENERAL FUND AND ITS OTHER POOLED CASH.
THE GENERAL FUND, IT IS AT A AND B UNDER OUR DEPOSITORY CONTRACT.
AND AS YOU ALL KNOW, THIS YEAR WE'VE, UH, DONE CASH MANAGEMENT THROUGH TAX POOL PRODUCT.
UM, I THINK THERE'S STILL ABOUT 8 MILLION AT TEXTUAL PRIME.
WE'RE PROBABLY GETTING READY TO MOVE 3 MILLION MORE VOLUME THEN, YOU KNOW, WE DO NEED TO USE MORE THAN ONE POOL.
TYING IN WITH THE GENTLEMAN'S PRESENTATION, WE'LL WEAVE THAT IN HERE.
SO YES, WE DO NEED, AND THEN WE'LL LOOK AT, UH, UH, OF A SHEET BACK HERE WHERE WE'VE GOT LOGIC IN TEXAS CLASS OR TWO OF THE OTHER POOLS.
THEN ALSO IN THIS CASH MANAGEMENT, IT IS NOT UNREASONABLE TO THINK THAT WE WOULD USE BANK CDS RATHER THAN COMPLETELY RELYING ON THE POOLS.
WE MAY GIVE AWAY SOME YIELD THAT WE COULD GET AT POOLS TO ACHIEVE A, A SAFETY GOAL BY HAVING MORE DIVERSITY.
NOT SAYING THAT FOR SURE, BUT JUST TO GIVE YOU AN IDEA, DIVERSITY IS AN IMPORTANT PART OF SAFETY.
THEN THE OTHER POOL OF CASH AT A AND B.
AND HERE'S, WE'RE GONNA LOOK AT PAGE, UH, IN A LITTLE BIT AND YOU'LL SEE THESE DOLLAR AMOUNTS, BUT THESE OTHER POOLED CASH ACCOUNTS HAVE A HIGH BALANCE OF ABOUT 11 MILLION AND THEY HAVE A LOW BALANCE OF ABOUT 5 MILLION.
SO WHEN WE LOOK AT THAT LOW BALANCE AS BEING MONEY, THAT NEVER LEAVES THE COUNTY.
CLEARLY THERE ARE SOME FUNDS THAT, THAT HAVE CERTAIN CHARACTERISTICS THAT LEND THEMSELVES TO MAKING SOME LONGER TERM INVESTMENT DECISIONS ON, AGAIN, USING CDS TO DIVERSIFY THAT MONEY, WHICH WOULD ALSO INCREASE OUR YIELD AND SAFETY, UH, PAGE THREE OF THE OTHER DESIGNATED ACCOUNTS.
AGAIN, ROAD BOND MON, SINCE WE'RE USING A AND B'S DEPOSITORY CONTRACT AND TEXT POOL PRIME, AGAIN, NEED TO LOOK AT OTHER POOLS TO GET DIVERSITY IN THE POOLS.
AND THEN AGAIN, HERE WITH THESE ROPE ON FUNDS, WE'VE GOT SOME REALLY GREAT OPPORTUNITIES TO USE A CD LADDER TO CONTINUE TO PROVIDE ADEQUATE LIQUIDITY, BUT ALSO TO INCREASE OUR YIELD.
YOU KNOW, IN THE MEETING THAT KAREN AND THE JUDGE AND I HAD, UH, WE DIDN'T HAVE ANY TASTE AROUND THAT TABLE TO DO AGENCY INVESTMENTS RIGHT NOW.
SO PAGE FOUR IS A LITTLE BIT OF THE HISTORY LESSON AND I WENT AND, AND THE, YOU KNOW, THE, THE POOLED CASH ACCOUNTS, UH, THAT WEREN'T GENERAL FUND.
THERE'S THE NOVEMBER 14 BALANCE OF ABOUT 6.5 ON PAGE FIVE.
THE NOVEMBER 15 BALANCE IS ABOUT 5.2 MILLION.
AND ON PAGE SIX, THE NOVEMBER 16TH BALANCE OF THAT BEING ABOUT 5.8 MILLION.
SO YOU CAN SEE THAT THAT'S THE LOW POINT OF THE CYCLE.
[00:55:02]
ONE, UH, THING THAT, THAT OUR INVESTMENT COMMITTEE WILL WORK ON IS OKAY, UH, OF THIS STATIC $5 MILLION AFTER WE'VE TALKED TO THE, THE PEOPLE THAT USE THOSE FUNDS.AND, AND WE'VE HIGHLIGHTED ON PAGE SEVEN, THOSE DOLLAR AMOUNTS THAT KIND OF MAKE UP THOSE STATIC FUNDS.
AND IT'S NOT SURPRISING THAT YOU COMMISSIONERS HAVE A FOUNDATIONAL ACCOUNT BALANCES THERE.
AND YOU CAN SEE THAT ON PAGE SEVEN AT THE END OF JULY, YOU CAN SEE EACH OF YOUR ROAD AND BRIDGE PRECINCT CASH ACCOUNTS.
AND SO AT THE, AT EVERY NOVEMBER AT THESE LOW POINTS, A GOOD PART OF THE CASH THAT'S CARRIED FORWARD IS YOUR CASH.
AND THEN AGAIN, ON EACH OF YOUR COPIES, I HIGHLIGHTED THERE FOR YOU THE, THE ACCOUNTS THAT HAVE OVER A HUNDRED THOUSAND DOLLARS IN THEM SO THAT WHEN WE'RE MAKING A DECISION ABOUT OF THAT FOUNDATIONAL MONEY, HOW MUCH OF THAT COULD WE INVEST IN CDS THAT ARE MORE THAN A YEAR MATURITY SO THAT WE CAN GET SOME SAFETY THROUGH DIVERSITY, GET A LITTLE INCREASED YIELD, BUT ALSO ACHIEVE OUR LIQUIDITY GOALS.
THEN PAGE NINE, YOU CAN SEE THIS IS THE LIST OF THE DESIGNATED ACCOUNTS, THE DEDICATED ACCOUNTS ON PAGE NINE, THAT THOSE ARE INDIVIDUAL BANK ACCOUNTS THAT HAVE, THAT PRODUCE THEIR OWN DEPOSIT SLIPS, THEIR OWN, UH, CHECKS WITH THEIR OWN ACCOUNT NUMBER, MOUNTING NUMBER.
AND WE HAND RECONCILE THOSE EACH MONTH.
SO AGAIN, IN LOOKING AT THAT, YOU KNOW, WE COULD, IF YOU LOOK AT THE $282,000 NUMBER AT THE BOTTOM OF THE PAGE, THAT'S THE EMPLOYEE SAVINGS ACCOUNT.
WE COULD CHOOSE TO SET UP A SPOOL PRIME ACCOUNT AND DEPOSIT THOSE EMPLOYEE SAVINGS WITHDRAWALS IN THERE.
THEY GET 35 BASIS POINTS FROM AMERICAN NATIONAL DEPOSITORY CONTRACT.
UH, THEY'D GET ABOUT 1.2% AT TEXT POOL PRIME.
AND AGAIN, THEY'RE THE EMPLOYEE SAVINGS, THEY, THEY GET THE INTEREST IN INCOME ALLOCATED TO THEM.
SO JUST, THERE'S NOT A LOT OF, OF, OF, UH, POTENTIAL HERE ON THE UH, UH, DESIGNATED ACCOUNTS.
BUT I DID WANT TO SHARE THAT WITH THEM.
OH, CHRISTMAS PROBABLY NOW IT, THEY DON'T EARN ANY INTEREST.
NOW IT IS AT, IT IS UNDER THE TERMS OF THE DEPOSITORY CONTRACT.
SO THEY, SO IT'S LIKE, AND THEY HAVE TO BE IN THERE ALL YEAR.
PEOPLE THAT WITHDRAWAL DURING THE COURSE OF THE YEAR, THEY DON'T GET ANY OF THE INTEREST INCOME THAT'S ACCRUED.
IT'S ONLY THE PEOPLE THAT ARE IN THERE THE ENTIRE YEAR AND THEY SHARE THE INTEREST FOR THE YEAR.
WE USUALLY WRITE THOSE CHECKS IN NOVEMBER FOR DISTRIBUTION.
THEN WE, RONNIE AND I TALKED ABOUT IF WE INVESTED THAT WE'D HAVE TO LEAVE SOME MONEY IN THERE BECAUSE EVERY ONCE IN A WHILE THERE'S SOMEBODY THAT HAS AN EMERGENCY AND THEY HAVE A RIGHT ONCE THEY FILL OUT THAT PIECE OF PAPER STATING IT'S EMERGENCY TO WITHDRAW IT.
SO WE'D HAVE TO LEAVE SOME FUNDS IN THAT.
IT SAVE 5,000, IT'S GOING, WE CAN GET IT BACK EVERY DAY.
YEAH, IT'S PRETTY HARD TO INVEST MUCH MONEY BECAUSE THERE'S NOT A LOT THERE JUST NOW BECOMING TO BE A LOT.
SO I MEAN AT THIS POINT, I MEAN FIRST YEAR THERE'S NOTHING.
SO THEN ON PAGE 10 TO INTRODUCE YOU TO SOME OF THE NAMES, UH, YOU KNOW, HILLTOP SECURITIES ON PAGE 10 ADMINISTERS TWO GOVERNMENT INVESTMENT POOLS FOR LOCAL TEXAS GOVERNMENTS, THE TEXAS SHORT TERM ASSET RESERVE FUND, TECHSTAR AND LOCAL GOVERNMENT INVESTMENT COOPERATIVE LOGIC.
PAGE 11 IS A POOL PROVIDER CALLED TEXAS CLASS INVESTMENTS.
THEN PAGE 12, YOU KNOW, FOR BANK CDS AND UM, YOU KNOW, APPRECIATE THE GENTLEMAN CHIMING IN.
YOU KNOW, ANOTHER UH, GROUP THAT HELPS BROKER CDS, UH, THAT I'VE MET IS FINANCIAL NORTHEASTERN AND THEY'RE IN AUSTIN.
BEEN ACTIVE A FEW YEARS AND THE FINANCIAL NORTHEASTERN COMPANIES IS, THEY MAKE THEIR MONEY FROM THE BANKS THAT THEY'RE MARKETING THE CDS KAUFMAN COUNTY CHOOSES FROM THE LIST THEY PROVIDE, WE GET THE A HUNDRED PERCENT OF THE INTEREST RATE POSTED BY THE BANK.
WE KEEP A RECORD BANK KEEPS A RECORD
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AND FINANCIAL NORTHEASTERN WILL KEEP A RECORD.SO WE'RE, YOU KNOW, WE'RE LOOKING AT A CD LADDER, WE'RE LOOKING AT USING CDS TO GO LONGER BECAUSE WE HAVE MONIES THAT AREN'T GOING TO BE USED SHORT TERM.
AND UH, SAM SENT ME PAGE 13, UH, I THINK THIS IS A $5 MILLION PORTFOLIO.
SO IT CREATED A GREAT VISUAL IMAGE FOR ME WHERE THAT WOULD BE KIND OF WHAT OUR REPORT MIGHT LOOK LIKE IF WE HAD 5 MILLION.
UH, A REPORT LOOKS LIKE THIS WEIGHTED AVERAGE MATURITIES 12.8 MONTHS, UH, WEIGHTED AVERAGE YIELD IS, UH, 1.47%.
SO, YOU KNOW, THERE'S JUST KIND OF A LAST EXAMPLE AND YOU KNOW, THE INVESTMENT COMMITTEE, YOU KNOW, IF, UH, NO ACTION TODAY.
WE JUST WANTED TO INFORM Y'ALL.
THIS IS A, A GOOD SUMMARY OF WHAT WE'VE TALKED ABOUT AND I THINK, UH, THIS NEXT STEP NOW IS WE'VE GOT TILL, YOU KNOW, PRACTICAL PURPOSES BE READY TO GO JANUARY, DECEMBER WHEN WE REALLY GET PROPERTY TAX REVENUES ROLLING AGAIN.
WE SEE ONCE AGAIN THE, THE LOW POINT ON THE OTHER POOL CASH ACCOUNTS.
SO WE GOT A THREE YEAR HISTORY, HAVE GREAT DISCUSSIONS WITH THE DIFFERENT ACCOUNTS AND THE PEOPLE THAT USE THOSE MONIES AND SPEND THOSE MONIES.
SO WE JUST WANTED TO INFORM Y'ALL, HERE'S WHERE THE DISCUSSIONS ARE GOING AND I THINK THAT DOVETAILS VERY NICELY.
WHAT'S THE FIRST RECENT, THE 26 MILLION ON THE MINE ROAD BONDS? WHERE IS IT NOW? IT'S ALL AT
AND IT'S, WHAT'S IT PAYING NOW APPROXIMATELY 1.24.
OKAY, THAT'S BETTER THAN IT WAS THIS TIME.
AND THAT'S WHERE, YOU KNOW, AGAIN, A KEY, YOU KNOW, A KEY PSYCHOLOGICAL BARRIER THAT HAS TO BE PUSHED THROUGH IS TO INCREASE SAFETY THROUGH DIVERSITY.
UH, WE MAY ACTUALLY HAVE BANK CDS THAT WOULDN'T PAY US AS MUCH AS THE POOL IS PAID.
AND YOU KNOW, I HEARD A VERY, VERY LARGE COUNTY IN OUR AREA SAYS YES, RONNIE, WE DO DO THAT BECAUSE 'CAUSE SAFETY TRUMPS YIELD.
I DON'T THINK WE HAVE A CHOICE.
AND I THINK OKAY, GOOD REPORT.
NEXT ITEM IS TO DISCUSS ATTORNEY GENERAL OF TEXAS KD 0 1 60.
UH, MR. OFIELD ASK THAT WE DISCUSS THIS, THIS, UH, I'LL LET YOU EXPLAIN THAT.
UH, IT IS THE AUDITOR AND I HAVE HAD THE DISCUSSIONS.
WE, AND I THINK, UH, THE JUDGE AND I HAD SHORT DISCUSSIONS AND, AND I FEEL CERTAIN THAT IF YOUR COMMISSIONER'S LIST SERVE IS LIKE THE TREASURER'S LIST SERVE, WHEN THIS OPINION CAME OUT, IT, UH, IT WAS WIDELY CIRCULATED.
AND UM, AND REALLY WHAT THE OPINION SAYS IS THAT, YOU KNOW, FOR UH, AN EXTENDED DECADES, YOU KNOW, KAUFMAN COUNTY HAS, HAS, UH, ALLOWED THE AUDITOR AND THE TREASURER TO PAY, UH, CERTAIN BILLS THAT COME DUE AND, UH, THE COUNTY'S RESPONSIBLE FOR, UM, BETWEEN COURT DATES.
AND, UM, AND I THINK WHAT THIS ATTORNEY GENERAL OPINION SAYS IS THAT IT, IT, IT'S WHAT KAREN AND I HAVE KNOWN AND MAKES US UNCOMFORTABLE THAT WE CAN'T REALLY OPERATE THAT WAY.
THAT, THAT WE'VE GOT TO, UH, ADJUST OUR TIMING AND SCHEDULING SO THAT, UM, FROM THE EXPECTATIONS OF THE RECIPIENTS OF DISBURSEMENT SERVE THE COUNTY, THE EXPECTATION OF RECIPIENTS AND THE TIMING OF COMMISSIONER'S COURT MEETINGS, THAT THOSE TWO THINGS COINCIDE.
SO THAT, UH, WHETHER IT'S WE DO ONLY PAY EVERY TWO WEEKS OR WE HAVE MORE COMMISSIONER COURT MEETINGS SO THAT WE CAN APPROVE BILLS AND THIS DOES INCLUDE PAYROLL, YOU KNOW, IN, IN ALL THE DISCUSSIONS.
SO, UM, UH, FOR INSTANCE, TODAY IS WE, THE MEETING WOULD'VE BEEN, AND, AND KAREN
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WOULD'VE HAD THE TRAVEL AND ODD UTILITY BILLS, ODD CREDIT CARD BILLS, JUST ALL THE INTERIM BILLS AND SHE WOULD HAVE THOSE PREPARED.WE WOULD HAVE A PAYROLL PRINTOUT OF SOME TYPE THAT'S HIGHLY REDACTED BECAUSE OF I, UH, AND PRIVACY RULES.
UM, BUT THAT, THOSE GET PRESENTED FOR PAYMENT, BOTH PAYMENT PRIOR TO US ISSUING THOSE CHECKS.
I DON'T LIKE THE LAW BECAUSE IT'S GONNA COST THE UTILITIES TO HAVE LATE FEES, THE CREDIT CARDS TO HAVE LATE FEES IF WE DON'T DO THIS RIGHT.
AND EVERYBODY'S GOT TO GET THEIR BILLS IN.
AND I'M TALKING FOUR Y'ALL TOO.
YOU HAVE TO GET YOUR BILLS AT TIMES SO WE CAN GET 'EM WORK.
NOTICE YOU SAID FOUR, NOT FIVE.
YEAH,
BUT, UH, TO AVOID THOSE LATE FEES AND STUFF WHERE WE'RE GONNA HAVE TO HAVE SOME COOPERATION.
UH, SO IT'D BE GOOD IF Y'ALL COULD YOU GO BACK TO YOUR DIFFERENT PRECINCTS AND TELL EVERYBODY TO GET THEIR BILLS IN ON TIME AND PROBABLY, UH, WE NEED TO HAVE A FILE TO, TO THE BANK FOR PAYROLL ON DIRECT DEPOSIT.
UH, I THINK IT'S WEDNESDAY BY ONE O'CLOCK, SO WE NEED TO HAVE Y'ALL PUT PAYROLL REGISTERS.
YOU KNOW, PROBABLY TUESDAYS WOULD BE A GOOD DAY.
TUESDAYS EARLY TUESDAY, SOME LIKE, MAYBE SOMETIME TUESDAY AFTERNOON OR WEDNESDAY MORNING.
I HATE TO ASK Y'ALL TO MEET AGAIN, YOU KNOW? WELL, I DON'T, BUT IT'S JUST NECESSARY.
WE KNOW IT'S NOT LAW, IT IS THE INTERPRETATION OF THE LAW, AND I DON'T THINK WE WOULD INTEND TO NOT FOLLOW THAT INTERPRETATION.
SO, UH, REBECCA, YOU, I KNOW YOU ONLY LOOKED AT THIS, YOU'VE LOOKED AT IT, I MEAN, I, AGING OPINIONS ARE ALWAYS ADVISOR, SO YOU TAKE THEM UNDER THAT LIGHT.
UM, BUT WHENEVER YOU READ THE STATUTES THAT ARE REFERENCED, IT IS CREATING BLACK AND WHITE, THAT, THAT NEEDS TO BE DONE THAT WAY, APPROVED BY THE COMMISSIONER'S COURT.
I THINK THAT A LOT OF COUNTIES HAVE OPERATED JUST LIKE KAUFMAN.
SO IT'S NOT THAT WE'RE THE ONLY ONES THAT HAVE BEEN DOING THIS, UM, BUT UNTIL THEY CAN GET IT FIXED LEGISLATIVELY, WHICH WILL BE IN A COUPLE YEARS, I KNOW THAT TAX, UM, ATTORNEYS, JAN ALLISON HAS ALREADY TALKED ABOUT PUTTING IN A BRACKET.
UM, THERE'S REALLY NOT ANOTHER SOLUTION IF WE'RE GONNA GO STRAIGHT, BLACK AND WHITE.
I DON'T ANTICIPATE SEEING THE AG, UH, CLARIFYING OR ISSUING ANY OTHER TYPE OF OPINION.
AND I'M NOT AWARE OF ANY OTHERS THAT ARE, THAT HAVE BEEN SUBMITTED IN.
IT'S JUST WALKER COUNTY THAT KIND OF SUBMIT THIS ONE IN AND KIND OF CHANGE THINGS UP FOR EVERYONE.
THE OTHER OPTION IS JUST GO TO A, A, UH, CHANGE THE COMMISSIONER COURT AGENDA WHEN YOU GUYS, YOU THINK MR. ALLISON GOT A, A GIRL CHEWING OUT FROM THE WALKER COUNTY AUDITOR.
BECAUSE IN HIS EMAIL HE HAD SAID SOMETHING THAT SHE DIDN'T AGREE WITH IT.
SO SHE ADDRESSED HIM ON, IN AN EMAIL THAT SHE WAS WRONGLY ACCUSED HER.
AND THE TREASURER DID NOT STIR THAT UP.
AND I THINK HE CLARIFIED THAT, THAT THEY IT NOT SEND THEM.
WELL, ANOTHER OPTION WOULD BE, UH, YEARS AGO WHEN I FIRST STARTED BACK, WE MET WHEAT, THE COMMISSION'S COURT DID.
AND UH, THE COURT AT THAT TIME DECIDED WE SPENT ALL OUR TIME MEETING AND, UH, YOU KNOW, WHICH WE DO A LOT OF MEETINGS AND WE ALL LOVE MEETINGS.
BUT I MEAN THAT YOU, YOU COULD SPECIFICALLY LIMIT IT JUST TO PROVING, UM, YEAH, JUST, JUST AN AUDIT ONLY DOCKET
I THINK WE HAVE THIS ON THE AGENDA FOR MONDAY OR SOMETHING.
BUT YOU GUYS DON'T SET YOUR MEETING SCHEDULE UNTIL OCTOBER, IS THAT RIGHT? I NEED TO GO BACK.
IT'S, I KNOW WE ARE SETTING HOLIDAYS.
WE CAN START WORRYING ABOUT HOLIDAYS KNOW, UH, EARLY ON AND UH, UH, I DON'T REMEMBER.
THAT'S SOMETHING WE CAN CHANGE.
YOU CAN JUST TEMPORARILY, SO ON MONDAY YOU GUYS COULD JUST TEMPORARILY FIX IT BY SETTING ON FOR EVERY TUESDAY OR WHENEVER KAREN WANTS WHATEVER WE WORK WITH MAKING SURE, OF COURSE, YOUR, USUALLY WE HAVE TUESDAY, WEDNESDAY, AND FRIDAY CHECKS, AND THAT'S USUALLY THE UTILITIES AND THE CREDIT CARDS AND THE TRAVELS AND PER DIEMS AND THINGS LIKE THAT.
AND PERIODIC, WE HAVE SPECIAL MEETINGS, YOU KNOW, MEETING.
AND IF WE START DOING IT ON TUESDAYS OR WEDNESDAYS, WE MIGHT BE ABLE TO COMBINE THOSE SPECIAL MEETINGS THAT TIME.
SO WE JUST DON'T SPEND ALL THE TIME.
SO THIS COMMON JUDGMENT ON THAT.
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BUT IT SOUNDS LIKE WE DON'T HAVE ANY CHOICE AT TO APPROVE THE BILLS EVERY OTHER WEEK AND UH, WE JUST HAVE TO HAVE A QUORUM HERE, I BELIEVE.IS THAT RIGHT OR IS THERE IT'S JUST A QUORUM.
A YOU CAN'T DO IT BY TELEPHONE.
AND THEN IF WE, OR CENSUS, THIS COMES BACK OVER 190,000 IN BETTER AND, UH, YOU KNOW, ON, ON THOSE PAYROLL THINGS, WE WILL NOT BE EMAILING YOU A PAYROLL REGISTER.
SIMPLY BECAUSE THAT HAS EVERYBODY'S INFORMATION ON IT.
AND I DON'T WANT IT SCANNED AND I DON'T WANT IT EMAILED TO ANYBODY AND THEIR EMAIL GET HACKED.
AND THEN WE GOT, WE ALREADY GOT AN ISSUE WITH SOMEBODY HAVING SOCIAL SECURITY NUMBERS AND PERTINENT INFORMATION ON THEIR CELL PHONE INSTEAD OF IN A COUNTY COMPUTER.
AND THAT PERSON'S NO LONGER EMPLOYED OF THIS COUNTY.
SO WE DO HAVE AN ISSUE AND YES.
SO WE'LL HAVE TO WORK THROUGH THAT.
THE BEGINNING, A DOCUMENT SUITABLE FOR THE PUBLIC RECORD OF APPROVING THAT, UM, WILL BE SOMETHING WE, I'M SURE SD W IS WORKING ON.
UM, BECAUSE IT, THE NON-DISCLOSURES THAT ARE IN THAT PAYROLL REGISTRY CAN'T BE A PAYROLL REGISTRY THAT YOU TYPICALLY VISUALIZE AS, AND WHEN THIS LAW WAS WRITTEN, THEY DIDN'T HAVE THE TECHNOLOGY THAT WE HAVE TODAY WHERE ALL OF YOU GET BILL, ALL THAT YOU DON'T GET, YOU DON'T GET THE PAYROLL.
SO, YOU KNOW, TECHNOLOGY HAS CHANGED.
SO RIGHT NOW WE DON'T SPEND A LOT OF TIME APPRO BILL BECAUSE HAD FOR DAYS WHEN YOU GET HERE.
AND SO THAT'S SOMETHING THAT THE LAW JUST HAD CALL EVERY TIME.
SO, WELL, YOU, YOU KNOW, IT'S KIND CON CONFUSING BECAUSE Y'ALL APPROVE THE BUDGET, YOU APPROVE THE SALARIES, RIGHT? YOU APPROVE THE RETIREMENT RATE, WORKERS' COMP RATE, ALL THAT STUFF.
WITH ALL THESE CONTRACTS WE HAVE WITH TI MEAN, WHAT MORE APPROVAL WOULD THEY WANT? PRETTY ABOVE.
I DON'T WANT TO TALK, BUT IT IS A RESPONSIBILITY THAT I AUDIT THE BILLS AND I SAY THAT WE'RE GONNA PAY 'EM.
AND IT'S YOUR RESPONSIBILITY TO REVIEW 'EM BECAUSE YOU SET THE BUDGET AND THE GUIDELINES AND YOU APPROVE THOSE CLAIMS AND THEN IT'S HIS RESPONSIBILITY TO DISPERSE THE FUNDS TO COVER THAT.
WELL Y'ALL THINK ABOUT ANOTHER OPPORTUNITY FOR SERVICE ABOUT, I'M SO GLAD ALL FIVE OF Y'ALL VOLUNTEERED.
AND FOR THAT REASON, POSSIBLE OFFICE EVERY OTHER I DON'T SEE AN ISSUE WITH.
THERE'S NOT AN ISSUE UNLESS, AS LONG AS, ALL RIGHT.
ANY OTHER, ANY OTHER QUESTIONS? HAVE MOTION TO ADJOURN? NICE MEETING.